Ukraine Discovers Massive Corruption Scheme Worth $40 Million Intended for Military Weapons

By Trisha Andrada

Jan 29, 2024 03:38 AM EST

A massive corruption scheme involving the acquisition of 100,000 mortar shells by the Ukrainian military, amounting to approximately 1.5 billion Ukrainian hryvnia or $40 million, was discovered by the Security Service of Ukraine (SBU).

In a report by The Associated Press, five individuals have been indicted, with one individual apprehended while attempting to cross the Ukrainian border, per the SBU's announcement made late Saturday, Jan. 27. They might spend as much as 12 years behind bars if convicted.

UKRAINE — (Photo : YASUYOSHI CHIBA / AFP via Getty Images)
A Ukrainian serviceman of the State Border Guard Service prepares mortar shells before moving to the firing position toward the Russian position in Bakhmut on February 16, 2023, as the head of Russia's mercenary outfit Wagner said it could take months to capture the embattled Ukraine city and slammed Moscow's "monstrous bureaucracy" for slowing military gains.

Joining EU-NATO

Kyiv is trying to speed up its membership in the European Union and North Atlantic Treaty Organization (NATO) by clamping down on corruption, and this inquiry comes as part of that effort. Both groups' officials have insisted that Kyiv implement stringent anti-graft measures before the nation can join.

Before Russia's full-scale invasion of Ukraine in February 2022, Ukrainian President Volodymyr Zelenskyy was elected in 2019 on a platform of anti-corruption. The president and his advisors have presented the recent dismissals of high-ranking officials--most notably, Ivan Bakanov, the former head of the State Security Service, in July 2022--as evidence of their determination to combat corruption.

Also Read: NATO Signs $1.2 Billion Contract for 155mm Artillery Ammunition to Boost Ukraine's Depleted Supplies

Large-Scale Fraud

The present probe, per the security authorities, began in August 2022, when officials inked a deal with the armaments manufacturer Lviv Arsenal for artillery rounds valued at 1.5 billion hryvnias ($39.6 million).

It was planned that after the firm received payment, its employees would send the money to an international corporation to ship the munitions to Ukraine.

Authorities said the funds were routed to other accounts in the Balkans and Ukraine, but the products were never delivered.

In a report by CNN, Lviv Arsenal CEO Yurii Zbitnev informed local media that the individual in charge of the ammunition contract had been dismissed.

The monies have already been confiscated and will be remitted to Ukraine's military budget, according to the prosecutor general.

Also Read: West in Danger of Losing $288 Billion if It Confiscates Frozen Russian Assets to Help Rebuild Ukraine: Report

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